What a Virtual CFO Actually Does for a Growing Company
Forecasting, fund-raise readiness and monthly business reviews – without the cost of a full-time hire. When a Virtual CFO makes sense and what to expect.
By CA Jay MehtaRead more →
The GST annual return is where every month’s small errors surface together. Businesses that treat it as a year-end formality often discover input tax credit mismatches, unreported outward supplies and unreconciled books only after the portal flags them.
1. Reconcile books with GSTR-1 and GSTR-3B
Start with outward supplies. Match your sales register to GSTR-1 and the tax paid in GSTR-3B, invoice by invoice for high-value transactions. Differences usually come from credit notes, advances and invoices booked in the wrong period.
2. Validate input tax credit against GSTR-2B
Compare ITC claimed with GSTR-2B and identify supplier-wise gaps. Where suppliers have not filed, follow up in writing – a documented trail is your best defence if credit is questioned later.
3. Review reversals and ineligible credits
Check blocked credits, Rule 42/43 reversals and credit on exempt supplies. These are the most common sources of scrutiny and are easy to miss in a busy quarter.
4. Prepare the reconciliation statement
For turnover above the prescribed limit, GSTR-9C requires a reconciliation between audited financials and the annual return. Start this in parallel with the audit, not after it.
A short pre-filing review by a professional almost always pays for itself. If you would like our team to run a reconciliation for your entity, get in touch.
